Fusion energy companies are revisiting their historical ties to the defense sector as they pursue both commercial power generation and national security applications. The fusion industry originally emerged from research into thermonuclear weapons during the Cold War, and this connection remains relevant today. A notable fusion experiment in 2022 took place at the National Ignition Facility, a center with longstanding national security roles.
Recent shifts in venture capital investment, particularly a slowdown in climate tech funding, have encouraged fusion startups to seek alternative financial support. The defense industry has become a key partner, especially as modern warfare increasingly incorporates drones, challenging traditional air defense systems designed for larger, manned aircraft.
Laser weapons offer a more cost-effective solution compared to expensive, single-use missiles. By using electricity from generators or reactors, lasers can engage targets rapidly and at lower operational costs. Fusion startups developing laser-based reactor technologies are well-positioned to contribute to these defense initiatives.
For example, Xcimer, a Denver-based fusion startup operating one of the largest private laser systems, recently announced a partnership with RTX Ventures, part of the defense conglomerate that includes Raytheon. This collaboration provides Xcimer with funding while allowing RTX to explore applications of Xcimer’s high-powered lasers.
Another fusion company, Pacific Fusion, has signed a memorandum of understanding with the National Nuclear Security Administration to collaborate on high-energy-density fusion experiments. Pacific Fusion is constructing a demonstration facility in New Mexico near prominent national laboratories. While the facility’s primary goal is to prove net power gain from fusion, its capabilities also support advanced defense research, including nuclear weapons experiments.
The involvement of defense applications has been a deliberate consideration for these startups. Pacific Fusion’s leadership includes individuals with extensive experience at national laboratories and security agencies. This renewed focus on defense-related fusion research not only honors the industry’s origins but also offers fusion startups critical funding and developmental support as they continue to advance fusion technology.